CELESTICA INC (CLS) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:CLS - CA15101Q2071 - Common Stock

300.07 USD

+9.14 (+3.14%)

Last: 1/23/2026, 3:26:06 PM

Fundamental Rating

Taking everything into account, CLS scores 7 out of 10 in our fundamental rating. CLS was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. CLS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CLS is growing strongly while it is still valued neutral. This is a good combination! These ratings would make CLS suitable for growth and quality investing!

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1. Profitability

1.1 Basic Checks

In the past year CLS was profitable.
In the past year CLS had a positive cash flow from operations.
CLS had positive earnings in each of the past 5 years.
CLS had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 10.85%, CLS belongs to the top of the industry, outperforming 91.94% of the companies in the same industry.
CLS's Return On Equity of 35.33% is amongst the best of the industry. CLS outperforms 95.97% of its industry peers.
CLS has a Return On Invested Capital of 21.33%. This is amongst the best in the industry. CLS outperforms 96.77% of its industry peers.
CLS had an Average Return On Invested Capital over the past 3 years of 11.43%. This is above the industry average of 8.83%.
The last Return On Invested Capital (21.33%) for CLS is above the 3 year average (11.43%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	10.85%
ROE	35.33%
ROIC	21.33%

ROA(3y)4.63%

ROA(5y)3.55%

ROE(3y)15.02%

ROE(5y)11.3%

ROIC(3y)11.43%

ROIC(5y)8.93%

1.3 Margins

Looking at the Profit Margin, with a value of 6.35%, CLS is in the better half of the industry, outperforming 71.77% of the companies in the same industry.
In the last couple of years the Profit Margin of CLS has grown nicely.
CLS has a better Operating Margin (7.33%) than 70.97% of its industry peers.
CLS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 12.04%, CLS is not doing good in the industry: 76.61% of the companies in the same industry are doing better.
CLS's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	7.33%
PM (TTM)	6.35%
GM	12.04%

OM growth 3Y24.27%

OM growth 5Y29.03%

PM growth 3Y34%

PM growth 5Y30.13%

GM growth 3Y8.03%

GM growth 5Y10.39%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CLS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CLS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CLS has less shares outstanding
The debt/assets ratio for CLS is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 6.83 indicates that CLS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.83, CLS belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
CLS has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
CLS's Debt to FCF ratio of 1.97 is fine compared to the rest of the industry. CLS outperforms 78.23% of its industry peers.
CLS has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of CLS (0.37) is worse than 60.48% of its industry peers.
Even though the debt/equity ratio score it not favorable for CLS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

		Industry Rank	Sector Rank
Debt/Equity	0.37
Debt/FCF	1.97
Altman-Z	6.83

ROIC/WACC1.44

WACC14.79%

2.3 Liquidity

A Current Ratio of 1.47 indicates that CLS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.47, CLS is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
CLS has a Quick Ratio of 1.47. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
CLS has a worse Quick ratio (0.88) than 84.68% of its industry peers.
CLS does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

		Industry Rank	Sector Rank
Current Ratio	1.47
Quick Ratio	0.88

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.90%, which is quite impressive.
Measured over the past years, CLS shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.11% on average per year.
CLS shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.09%.
The Revenue has been growing by 10.38% on average over the past years. This is quite good.

EPS 1Y (TTM)47.9%

EPS 3Y44.1%

EPS 5Y48.11%

EPS Q2Q%51.92%

Revenue 1Y (TTM)22.09%

Revenue growth 3Y19.63%

Revenue growth 5Y10.38%

Sales Q2Q%27.79%

3.2 Future

The Earnings Per Share is expected to grow by 38.14% on average over the next years. This is a very strong growth
Based on estimates for the next years, CLS will show a very strong growth in Revenue. The Revenue will grow by 27.74% on average per year.

EPS Next Y53.05%

EPS Next 2Y46.37%

EPS Next 3Y43.28%

EPS Next 5Y38.14%

Revenue Next Year26.52%

Revenue Next 2Y29.69%

Revenue Next 3Y30.76%

Revenue Next 5Y27.74%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

CLS is valuated quite expensively with a Price/Earnings ratio of 56.83.
CLS's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, CLS is valued quite expensively.
A Price/Forward Earnings ratio of 35.73 indicates a quite expensive valuation of CLS.
CLS's Price/Forward Earnings ratio is in line with the industry average.
CLS's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.32.

		Industry Rank	Sector Rank
PE	56.83
Fwd PE	35.73

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as CLS.
CLS's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	86.69
EV/EBITDA	34.31

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CLS has an outstanding profitability rating, which may justify a higher PE ratio.
CLS's earnings are expected to grow with 43.27% in the coming years. This may justify a more expensive valuation.